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Q1. What are the terms of trade if the united states trades 1 can of soda for 5 units of clothing?
Explain why price regulation of a monopoly in a contestable market will not correct a market inefficiency.
Q2. Assume the generic production function Q=f(K,L) displays both decreasing returns to capital (K) and decreasing returns to labour (L), then:
Answer this production function will certainly display decreasing returns to scale.
This production function will certainly display constant returns to scale.
This production function will certainly display increasing returns to scale.
This production function may display increasing returns to scale.
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Using a wholesale price of $4 per case in each state, calculate the breakeven output quantities for each alternative.
Estimated regression equation for which quantifies the demand for Widget
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
Illustrate and explain the movement of the aggregate demand and aggregate supply curve both in the short and long run.
A farmer has a production function f(L) where the input is capital (L). The cost of this loan is L(1+i). The farmer also has an outside option (loan from family member) which generates a profit of A.
What steps can a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept.
The vertical long run AS curve compatible with classical economics implies that AD only determines the price level
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
Sketch the extensive form of the game, carefully labelling the players that move and the actions they have available
Suppose that the participation variable, voucher, is completely randomized in the sense that it is independent of both observed and unobserved factors that can affect the test score.
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